Saturday, May 14, 2016

George Smith Partners Secures $115.3 Million in Financing for 566-Unit Class A Multifamily Property in Los Angeles, CA

Orsini II Apartments, Downtown Los Angeles, CA

 LOS ANGELES, CA  – Commercial real estate investment banking firm George Smith Partners has successfully secured $115.3 million in cash-out refinancing for the Orsini II, a 566-unit Class A multifamily apartment community in downtown Los Angeles on behalf of its client, a Southern California-based commercial real estate developer.

The financing was arranged by George Smith Partners’ Principal and Managing Director, Gary M. Tenzer.

            “Refinancing is a major topic of discussion in the current commercial real estate market,” says Tenzer. 

“With a wall of maturities approaching and recent volatility in the CMBS market, many commercial real estate borrowers are concerned that refinance transactions will require capital injections in order to close.” 

However, Tenzer notes that multifamily product in the Los Angeles market has fared very well, and in many cases, values have risen enough to support cash-out transactions.

Gary M. Tenzer
            “In this case, the institutional-quality asset was completed in 2008 and is currently 99 percent occupied and extremely well-maintained,” explains Tenzer.  “Based on this stability and the sponsor’s strong track record, lender interest was competitive, and we were successful in securing extremely competitive terms for our client.”

            George Smith Partners secured the $115.3 million floating rate loan at 57 percent LTV. The loan is priced over LIBOR and is interest only throughout its 10-year term. 

            The Orsini II is a mid-rise, over podium apartment complex comprised of five stories built over a three-level parking garage.

 Situated on 5.66 acres at the Southeast corner of Figueroa Street and Cesar Chavez Avenue, the building is within walking distance of central downtown Los Angeles and adjacent to the LA Music Center.  

The property offers 566 apartments comprised of studio, one-, and two-bedroom units, as well as two-bedroom loft units, and also includes 20,448 square feet of ground-floor retail.

For a complete copy of the company’s news release, please contact:

Jenn Quader / Miki Conant
Brower, Miller & Cole
(949) 955-7940

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